Honorable Chairman of the Federal Reserve, Jerome Powell has said that he would never submit resign, even after U.S. President Donald Trump asks to. During the last months of 2018, president Trump has criticized repeatedly Powell and the Federal Reserve for continuing with their tightened monetary policies in the country.
During a press conference with the topmost Business news media in Newyork, Jerome Powell has gone as far by saying that the Fed is going to be one of the biggest threat to the economy of United States. Reports say that the President has also asked his advisers if he can have Powell fired. In the year 2017, President Trump has hired Powell to succeed at Janet Yellen. The movie strayed from the norm. Chairmen often serve multiple terms. While the President has appointed the Federal Chairman, the Federal Reserve which remains as an independent agency. Over the policies of disagreements, The President has no power to fire the Federal Reserve Chairman. If manipulated by doing so can send markets into a tailspin.
Steve Mnuchin Claims President Never Wanted to Fire Powell
During the last few days of December in 2018, Steve Mnuchin, honorable secretary of Treasury, who was also in support of Powell’s appointment, has shared his views on Twitter that, Prez Donald Trump had never had it in mind to fire Powell, neither does he believe the president had the power to go through with it.
(2/2) especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”
— Steven Mnuchin (@stevenmnuchin1) December 22, 2018
On Friday Powell fired back and said that he has no plans to leave his job, even if asked by Donald Trump to do so. On Friday, at American Economics Association, when asked during a panel along with Ben Bernake, the former Chairman of Federal Reserve and Janet Yellen, Powell simply replied, “No!” Jerome Powell has confirmed that neither Donald Trump nor his aides have contacted him or expressed displeasure. Jerome said that he doesn’t have any plans to meet with Trump. Even though there are humongous rumors of a planned meeting between the President and the former investment banker. The hope is to alleviate animosity. Moreover, discussing with the moderator Neil Irwin, Jerome Powell said that, “Meetings between presidents and Fed chairs do happen, but nothing’s been scheduled.”
Monetary Policy Is Not Political
Janet Yellen and Ben Bernanke have highlighted the significance of isolating the schemes of monetary policy decisions from political influences. It ensures the soundness for them with these decisions and assures investors. Honorable Presidents Lyndon Johnson and Richard Nixon have influenced their Federal Reserve chairs. The very recent presidents have chosen not to comment on these policy decisions.
President Yellen said that “Obviously, the U.S. President has the right to comment on the Federal Reserve. But I personally, would worry that if it continues or intensifies, it could undermine confidence in the Federal Reserve.” Jerome Powell also reiterated the fact that the Fed would continue to work/function without being swayed by any comments made by the politician in the Country, including those of the U.S. President.
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!
— Donald J. Trump (@realDonaldTrump) December 24, 2018
In the month of December 2018, the Fed has raised the interest rates, even in the midst of signs that the global economy might be slowing down, it has signaled that it might consider making few changes in 2019.